When the economy goes south and money starts getting tight, the first thing people do is normally cut expenses. Mistakenly, marketing is usually the first thing to be cut. The biggest crime in this scenario is looking at Marketing as an “expense” when it is actually and “investment.” Marketing isn’t something you do because you have extra money lying around…it is an investment to make more money:
“it takes money to make money.”
Marketing IS the money it takes to make money.
Even since The Great Depression of the 1930’s, companies that out-marketed, out-sold, and out-promoted gained market share and long-term profitability over their competition. Studies by the STRATEGIC PLANNING INSTITUTE, the Association of Business publishers, McGraw-Hill, Cahners, and Nielsen all show that marketing investments are MORE critical during a downturn.
MERCER CO. studies showed that, 70% of companies that simply cut cost in a slowdown, failed to make profitable growth FOR FIVE YEARS!
Here are PROVEN SUCCESSFUL IDEAS for turning around the effects of a “recession”:
1. Hire newly available talent
2. Let go of consistent underperformers
3. Maintain or increase employee training
4. Redeploy your most capable people into the field to sell
5. Cut customers’ costs. Show customers how your products reduce waste, save time, improve warranties
6. Take advantage of the fact that customers have more time to see salespeople and greater incentive to cut cost
7. Partner with customers to develop and launch new products
8. Rush new products to market
9. Invest in web projects to cut administrative costs and reduce bureaucracy.
10. Target customers of weaker or weakened competitors, especially those competitors that pull back and reduce their visibility.
11. Have top managers make sales calls on end-use customers.
REMEMBER: Recessions are market share growth opportunities! Because many business mistakenly cut marketing…that means a lot of business is up for grabs. If you don’t grab it, someone else who is reading this article will. 🙂 The marketing term for this is “advertising noise.” When other companies are silent, your message will stand out and be heard!
REFERENCE: “How to Become a Marketing Superstar” by Jeffery J Fox; 2003